Economy

Parliament passes $1.1 billion budget without changes

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The Minister of Finance, Lautimuia Uelese Vaai speaking in Parliament.

Staff Reporters/

Apia, SAMOA – 13 March 2024 – Parliament last night passed the 2024/2024 budget estimates without changes to the $1.1billion tala budget that incorporates funding for two new ministries and the Samoa Export Authority.

The new Ministry of Lands and Survey will be in charge of all government owned lands now spread around under the Samoa Land Corporation, MNRE, STEC and the Land Board and has $8,538,886 budget allocation.

The new Ministry of Sports and Recreation that will also oversee the Sports Facilities has a budget allocation of – $8,218,889.

The Samoa Export Authority under the Ministry of Pubic Enterprises has a $1,213,804 allocation n the new budget.

Public Servants also get the final phase of the Cost-of-Living Adjustment (COLA), with the goal of enhancing the purchasing power of public servants.

In this phase, salaries for all Principal Officers and below will be increased by 3.0%. Those earning above the Principal Officer level up to below the CEO level will see a 2.0% increase, while CEOs will receive a 1.0% increase only.   

The Opposition Deputy Leader Fonotoe Lauofo speaking on the budget.

In the Budget Address, the Minister of Finance, Lautimuia Uelese Vaai said the Government is not introducing or increasing any taxes in the fiscal year 2024/2025, but is focussing on improving tax compliance given the high level of forecasted economic activity.

Total receipts are anticipated to increase by 7%, driven by an 18% increase in External Grants equivalent to $30.4 million tala in nominal terms, and a 4% increase in Ordinary Receipts equivalent to $33.3 million tala in nominal terms

Economic update:
* The economy rebounded stronger than expected, supported by robust economic activities since border re-opened in August 2022, including steady return of tourists and visiting families.

  • The annual growth to end December 2023 is 10.2% higher than December 2022.

The Minister forecasts a steady economic outlook, projecting a growth rate of approximately 6.6% for the current year. The economy will increase further to 5.8% growth rate in FY2024/ 25 compare to the initial expectation in the previous budget of 3.9%.

  • The Annual Inflation rate remains elevated but gradually decreased to 5.9% in March 2024 from a high peak of 12.0% in June 2023. This largely reflects the sharper decline in imported inflation rate from 14.5% to 5.1%, and domestic inflation rate from 9.2% to 6.0% over the comparative period.
  • Official Gross Foreign Reserves is at an all-time high of $1.3 billion tala equivalent to 13.1 months import cover in February 2024.
  • Public Debt has continued to decline with a debt to GDP ratio of 30.6% at the end of December 2023, reflecting a reduced debt stock of $865 million tala and an increasing GDP growth.
  • Visitor Arrivals increased by 81.2% to 121,521 visitors in the first eight months of the current financial year compared to the last financial year. Consequently, visitors’ earnings surged by 91.8% to approximately $419.8 million tala, up from $218.8 million tala.
  • Remittance flows increased by 2.2%, registering a total of $580.3 million tala in the first eight months of the current financial year.

CHOGM: The new budget is allocating another $20.0 million tala for the hosting of this event in terms of catering, accommodation, accreditation, receptions, security, health and emergency services, communication and I.T. services, transport and venues.

Parliament in session.

Budget details of the estimates for each Ministry and Office for the fiscal year 2024/2025:

  1. Ministry of Agriculture and Fisheries – $20,434,017
    * This includes the Government Grant to the Scientific Research Organisation of Samoa – $5,169,426
    * $100,000 for the Animal Protection Society
  1. Ministry of Commerce, Industry & Labour – $20,787,951
    * This includes the Government Grant to the Samoa Tourism Authority – $9,572,575
    * $350,000 to the Samoa Chamber of Commerce
    * $350,000 for the Samoa Business Hub
    * $3,000,000 for the Micro, Small and Medium Enterprises Fund channeled through the Samoa Business Hub.
  1. Ministry of Communications and Information Technology – $10,432,093
    * Includes $2,657,513 which is the Government Grant to the Office of the Regulator
  1. Ministry of Education and Culture – $135,466,017
    * This includes Government Grant to the Samoa Qualifications Authority – $6,600,317
    * National University of Samoa – $18,074,138
    * One Government School Grants – $18,000,000
    * Samoa Arts Council – $50,000
  1. Ministry of Sports and Recreation – $8,218,889
    * Third Party Outputs – $3,288,304 which is the Government Grant to the Samoa Sports Facility Authority
  1. Ministry of Finance – $117,790,778
    * Includes $37,500,000 for the Senior Citizens Pension and Disability Benefits which will be administered by the Samoa National Provident Fund
    * $3,000,000 to the Development Bank of Samoa for the Highly Concessional Loan Facility
  1. Ministry of Foreign Affairs and Trade – $30,191,493
  2. Ministry of Health – $156,664,219
    * This includes Government Grant to the National Kidney Foundation – $10,996,100
    * $200,000 for the Non-Communicable Disease Clinic
    * $100,000 for the Samoa Red Cross Society
    * $100,000 for the Samoa Cancer Society
    * $100,000 for the Goshen Trust
    * $100,000 for the Matuaileoo Environment Trust Incorporated (METI)
    * $50,000 for the Samoa Family Health Association
  1. Ministry of Justice and Courts Administration – $22,632,720
    * This includes $450,000 for the Legal Aid Services
    * $5,000,000 for the Savaii Court House Construction
    * Ministry of Natural Resources and Environment – $22,722,736
    * This includes $4,486,273 for the Waste Management Service Contracts
  1. Ministry of Lands and Survey – $8,538,886
  2. Ministry of Police, Prisons and Corrections – $58,333,194
    * Third Party Outputs – $14,261,102 which is the Government Grant to the Fire and Emergency Services Authority
  1. Ministry of the Prime Minister and Cabinet – $11,008,147
  2. Ministry for Customs and Revenue – $14,436,486
  3. Ministry for Women, Community and Social Development – $65,665,347
    * This includes the $51,000,000 for the District Development Program.
  1. Ministry of Works, Transport and Infrastructure – $50,762,039
    Third Party Outputs – $43,238,426 this include:
    * $3,000,000 for Community Service Obligations by the Samoa Water Authority
    * $3,000,000 for Community Service Obligations by the Electric Power Corporation
    * $5,050,000 for the EU’s Budget Support to the Samoa Water Authority
    * $32,188,426 Government Grant to the Land Transport Authority
  1. Office of the Attorney General – $5,642,267
  2. Samoa Audit Office – $4,431,763
  3. Office of the Electoral Commissioner – $3,392,353
  4. Office of the Clerk of the Legislative Assembly – $8,402,796
  5. Office of the Ombudsman – $1,727,923
  6. Public Service Commission – $13,372,015
  7. Samoa Bureau of Statistics – $5,567,770
  8. Law Reform Commission – $1,522,256
  9. Ministry for Public Enterprises – $ 4,788,468
    * This includes $1,213,804 for establishment of the Samoa Exports Authority
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